Source: Ukragroconsult (Ukraine)
Wheat futures on Euronext fell for a fifth straight session on Monday as favorable crop prospects and competitive prices in Russia continued to overshadow weather-related crop damage in Western Europe, traders and analysts said.
September wheat futures on the Paris-based Euronext exchange fell 0.4 percent to 216.50 euros ($234.23) a tonne this afternoon GMT, after touching 215.00 euros, the lowest since July 19.
After fears of a poor harvest in France pushed Euronext to a two-week high last Monday, the market was pressured by fresh signs of a good crop in Russia and export competition from Russian and other Black Sea wheat.
“Russia’s wheat crop is growing, while France’s crop is declining,” said commodity data specialist CM Navigator in a statement.
The European Union’s weak wheat exports at the start of the season have raised concerns among traders that the EU is too far behind in exports, even though the harvest is expected to be modest.
A tender for wheat imports announced by Tunisia on Tuesday will be further evidence of export competition.
Rain over the weekend, including showers at the start of the Olympic Games in Paris, has again hampered the harvest in France and Germany.
Traders are now waiting to see if this week’s hot weather will speed up fieldwork and give a clearer picture of the harvest in the EU’s two largest wheat-producing countries.
In France, barges carrying grain passed through Paris early on Saturday morning as part of special measures to support harvest logistics during the Olympic Games, the French river shipping association said.
The Seine is a key route for delivering grain to France’s main export terminal in Rouen, although traders say a small expected harvest and weak demand should soften the impact of Olympic shipping restrictions.
In oilseeds, futures for rapeseed for delivery in November on Euronext fell 0.5% to 478.00 euros per tonne.
The sharp fall in Strategie Grains’ monthly forecast for the EU rapeseed crop was in line with market expectations and was offset by a fall in soybean prices in Chicago, which in turn was linked to favorable growing conditions in the US.